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Settling nicely above 6 pound now (6.43) - fair play this share is a gem! a key indicator for 2012 will be if we see Q1 growth! dont forget we have the olympics and euro football - this combined with a hot summer could lead to a stirling yr for Nicl! continue to feel bullish here and looking forward to the prelim results (hopefuly begining of March!)
a bit of profit taking and now retesting 6pound - nice
Yes, happy with the update. I have held Nichols for many years on the expectation that they would one day exploit the Vimto brand, or someone else would do it for them. In the last few years they have disposed of the peripheral food businesses and manufacturing process. The benefits are now clear for all to see. As the founding family still hold a controlling holding, this almost certainly guarantees a progressive dividend policy. All to play for... maybe worth significantly more in 2-3 years time. :-)
L2 Whoop, Whoop
I still think this could be a takeover target - the likes of Coke have gaps in their Squash portfollio and this would make a nice addition. They have done well, consistant YOY growth - plus a nice divi. Happy with my last top-up!!!
WW - You will have liked the update no doubt!
e-Close Trading Statement Nichols plc ("the Group"), today issues the following pre-close trading update. Trading The Group has maintained the excellent momentum reported at the half year, with sales for the year to the 31 December 2011 increasing by 18% compared to 2010. This performance is ahead of our internal expectations, has been achieved against strong prior year comparatives (16% uplift on 2009) and despite the continued downturn affecting the UK economy. Once again our brands have outperformed the soft drinks market in the UK and our strong and well established international business continues to deliver significant year on year growth. In our UK business, gross margins remain under pressure due to a combination of raw material cost inflation and the exceptionally high level of promotional activity in 2011. It is therefore pleasing to report that our Operating Profit margin will be maintained as a result of ongoing productivity improvements and tight control of costs. The Group's balance sheet remains strong, with underlying cash generation also ahead of internal expectations. In summary, we expect Group profit to be significantly ahead of last year and ahead of current market expectations for the year ended 31 December 2011.
http://www.investegate.co.uk/Article.aspx?id=201201060700100991V
Does anyone know if we are expecting a trading update, early Jan. Interesting to see if revenues break £100M for 2011.
Shore Capital reiterated its "buy" recommendation for soft drinks manufacturer Nichols (NICL). In a rather convoluted story, the broker notes that Coca-Cola has agreed to buy 50% of Saudi Arabian beverage company Aujan, to which Nichols has licenced the production and sale of its Vimto drink. Shore estimates that Vimto accounts for 20% of Aujan's revenues and is encouraged by the involvement of Coca-Cola which has the potential to growth the brand using its global distribution and marketing capabilities. Nichols shares rose 14.25p to 521.25p
Think momentum will have been maintained in the 2nd half of the yr - so expecting solid yr end results - Target £5.75 Soft drinks group Nichols (NICL), the company behind the Vimto brand, has reported a 20.4% increase in pre-tax profits for the six months to June amid a rise in overseas sales. The AIM-50 constituent reported pre-tax profits of £7.2m on sales up 14.4% to £50.5m. EPS increased by 23.8% to 14.62p while the interim dividend rose 12.3% to 9.1p. A net cash position of £14.4m was also declared.
Share price has ridden the storm so far, sales momentum has continued and mid year results were strong (with cash in the bank!) - Weather wise not the best of summers (although again mid year position remained strong, wih international sales also supporting performance) - Spread puts me off a little (especially in this climate) - so the question is: top up or not????? · Group sales up 14.4% · Profit before tax up 20.4% · EPS up 23.8% · Interim dividend up 12.4% · UK volumes up 11% against a market up only 1% (source: AC Nielsen) · UK sales up 13% / International sales up 13% · Net cash of £14.4m (2010: £11.7m
http://www.investegate.co.uk/Article.aspx?id=201108040700157079L
NicholsBUY 04/08/2011 Ben Jaglom Soft drinks group Nichols (NICL), the company behind the Vimto brand, has reported a 20.4% increase in pre-tax profits for the six months to June amid a rise in overseas sales. The AIM-50 constituent reported pre-tax profits of £7.2m on sales up 14.4% to £50.5m. EPS increased by 23.8% to 14.62p while the interim dividend rose 12.3% to 9.1p. A net cash position of £14.4m was also declared. The increases were driven by growth across its territories, with its UK business growing sales by 11% while international sales were up 13% due to a 14% rise in sales to Africa and an 11% rise in sales to the Middle East. Last year it was well publicised that Nichols had received considerable orders from the Middle East due to the popularity of its Vimto drink among Muslims fasting in the holy month of Ramadan, as it was said to provide an energy boost. Nichols added that over the period it launched the Levi Roots brand of Caribbean fruit drinks, named after the Dragon's Den contestant and entrepreneur behind the 'Reggae Reggae' brand. It noted that, while there had been 'well-documented economic challenges affecting the consumer', margins had been maintained by 'a combination of price increases, cost efficiencies, new product development and international business growth'. Following the results, analysts at house broker Brewin Dolphin increased their forecasts. The broker is pencilling in pre-tax profits of £16.6m (EPS: 33.6p) on turnover of £93.5m for the year to December 2011. Profits of £17.4m on sales of £98m are forecast for 2012. Having almost tripled its 2009 price of 200p, Nichols has grown impressively over the past few years at a time when most of its sector peers have suffered due to the reduction in consumer spending. Growing at a considerable rate in the Middle East and bolstered by its popularity amongst Muslims fasting for Ramadan (which falls in the second half of the year), the company looks set to expand on its existing overseas footprint.
the last 2 days - largest I have ever seen - any opinions?
Warm weather and the run of bank holidays have helped Vimto maker Nichols' sales to fizz in recent weeks, prompting a surge in its shares to over 500p for the first time. Nichols' shares gained two per cent, or 10.25p, to 510p after a buoyant update. The rise gave the business a market value of more than £185m. Chairman John Nichols told shareholders at the firm's annual meeting that sales in the first four months of the year were ahead of internal forecasts, rising by 12.5 per cent in the UK. The domestic market accounts for more than 80 per cent of overall revenues for the firm, which is based at Newton-le-Willows. Chief executive Brendan Hynes said the recent good weather, spate of bank holidays and the royal wedding had boosted sales of soft drinks. “People have been out and about in greater numbers and there has been a feel-good factor, leading to people spending more,” he said. Nichols, whose brands include Sunkist and Panda, has also increased its UK market share by obtaining more selling space in supermarkets and cash and carry outlets, and by securing listings in channels which offer drinks as impulse buys, such as branches of Blockbuster. Nichols has also begun selling a range of Levi Roots' Reggae Reggae Caribbean drinks under a licensing deal, which it said has been well received by major trade customers. Internationally, sales in Nichols' core Middle East and Africa markets are ahead of expectations. Nichols is expanding in Africa by introducing more exotic flavours of Sunkist, such as orange and passion fruit, as well as 500ml bottles for the impulse purchase market. The group normally invests about 13-14 per cent of overall turnover each year to promote its brands but is increasing the figure for 2011 by around one per cent or nearly £1m. This will include a complete update of Vimto packaging and a multi-media advertising campaign which starts this month. Mr Nichols told shareholders: “At this early stage of the financial year we are very pleased with the group's continuing progress and we are confident of delivering further sales and earnings growth in line with expectations for the full year.” Analyst Phil Carroll, of broker Shore Capital, is forecasting adjusted pre-tax profits of £15.9m on sales of £91m for this year compared with earnings of £15.1m on revenues of £83.9m in 2010
eggs a kunt
Have seen the new launch in Tescos (great news to be listed in the largest UK retailer). Also found the following: Set to be released to trade from March 2011, the fruit juice will be available through the Grocery channel alongside the 2L fizzy, which will also be available with the 500ml bottle and cans through the Impulse channel to support independent retailers and forecourts. The UK’s major multiples are already behind the launch of the brand with the first batch of the Levi Roots range to hit the shelves nationwide from 28 March. Neil Gibson, Head of marketing for Vimto Soft Drinks said: “Introducing Levi Roots in to the soft drinks market is very exciting as we know there’s fantastic potential for the range, given its unique proposition in a growing category. “The UK consumer is becoming more experimental as more exotic flavours are being introduced on to the market. This new range has all the right ingredients to be loved by consumers, especially as it is headed up by a people’s champion who is well known for creating quality products packed full of character and taste. “Levi has successfully used his unconventional style to challenge the ‘big boys’ in the market and, as we’re a company that also likes to do things differently this gives us the right ingredients to come together and create a recipe for success.” RRSPs Levi Roots fizzy drinks: 2 Litre bottle- £1.69 (Grocery) / £1.89 (Impulse) 500ml bottle – £1.09 (Grocery) / £1.19 and 99p PMP (Impulse) 330ml can – 65p (Impulse) Levi Roots fruit juices: 1Litre Tetra – £1.59 (Grocery) Superb!!
Hello - have you seen any recent Nicl broker reports? if so care to share? I have not heard of Sirco - will keep my eye out for it. Reggae Reggae will hopefuly be a competitor for Lilt - lets hope it does well! if they can launch it with a few pack sizes (500ml impulse, and a Take Home pack listed in the mults) then (with a couple of nice listings) it could be worth a few million incremental (fingers crossed!!!!).
Nice Rise today, +4% and up 9.8% since I last posted (last Wed). Still more value to come, current broker reccomendations at £5.25.
If you knock the £15million cash in the latest balance sheet from market cap (161 million) and divide by the latest eps (30.2p times 36.6) you arrive at a PE of 13.2 which looks way to cheap for a company with Nichols prospects. Even if the market is too dumb to realise this it won't be long before a predator steps up to the plate.
Mulled wine nice to meet a fellow investor - Nichols as a whole appears to be fairly cash rich- maybe the city was expecting a little more to be returned to the investors? eitherway SP has cooled since the results. Beyond the fantastic results hopefuly the Levi Roots launch will also add incremental business (Total Reggae Reggae brand valued at £30m based on retail RSP) - not sure what the brand concept is but if it is a tropical carbonated drink then it might be well placed to take on Lilt. This launch plus Dayla full acquisition, continued Vimto growth (through overseas growth) - and hopefuly a nice hot UK summer will all help!
NOTES TO THE PRELIMINARY ANNOUNCEMENT Acquisition of Dayla Liquid Packing Ltd Nichols plc announces the acquisition of the remaining 50% of the issued share capital of Dayla Liquid Packing Ltd (Dayla), for a consideration of £2.3m, based upon the previously agreed earnings valuation mechanism contained in the acquisition agreement dated December 2008. This completes the full acquisition of the company having purchased the initial 50% on 9 December 2008. This acquisition gives us access to the growing premium juice, bag in box market and broadens our product offering. Ian Richard Jenkins and Christine Myrtle Jenkins are shareholders in and directors of Dayla. Accordingly the acquisition of the remaining 50% of Dayla from them is deemed to be a related party transaction for the purposes of the AIM Rules for Companies. The Nichols plc Board, excluding Brendan Hynes who is also a Director of Dayla but not a shareholder, having consulted with Brewin Dolphin Ltd, the company's Nominated Adviser, believe that the terms of the acquisition of the remaining 50% of Dayla are fair and reasonable insofar as the Company's shareholders are concerned. In Dayla's last audited accounts (for the 15 months to 31 December 2009) its sales were £13.0m and operating profits were £1.1m. Total assets less current liabilities were £1.5m, with £0.3m of long term liabilities including debt. 9 March 2011
Shore Capital retained its "buy" rating for soft drinks distributor Nichols (NICL). Despite a solid set of results, the broker thinks that negative sentiment continues to weigh on the shares due to concerns on input cost pressure and the UK consumer. Whilst this may be justified to some extent, Shore believes the strong growth experienced in its international business has mitigated margin pressure and, therefore, believes the recent weakness in the share price represents an excellent investment opportunity. Shares in Nichols fizzed ahead by 1.25p to 442.375p.
Group sales up +16% to £83.9m (2009: £72.4m) · Profit before tax (pre-exceptional) up +23% to 15.1m (2009: £12.2m) · EPS (pre-exceptional) up +29% to 30.23p (2009: 23.44p) · Proposed final dividend of 9.1p making the total dividend for the year 13.55p up +11.5% (2009: 12.15p) · Announced today: acquisition of remaining 50% of Dayla 2010 was another outstanding year, despite the difficult economic environment. We made excellent progress and were well ahead of 2009, which was also a record year for us and therefore a tough target to beat. In a challenging consumer market, once again we have delivered double digit growth in volume, revenue and profitability." "We remain confident in producing further profitable growth in 2011 and beyond." Based on our excellent performance in 2010 and the Board's confidence in the ongoing strength of the Group, we are pleased to recommend a final dividend of 9.1 pence per share. This means a total dividend for the year of 13.55 pence (2009: 12.15 pence), an increase of +11.5%. If approved, the final dividend will be paid on 6 May 2011 to shareholders registered at 8 April 2011; the ex-dividend date is 6 April 2011. · Announced today: licence for Levi Roots (Reggae Reggae) brand for UK soft drinks